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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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NUBD Co. has only 25,000 hours of machine time each month to manufacture its two products. Product X has a contribution margin of P50 and Product Y has a contribution margin of P64. Product X requires 5 machine hours and Product Y, 8 hours. If the company wants to dedicate 80% of its machine time to the product that will provide the most income, it will have a total contribution margin of
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- Rosie's Company has three products, P1, P2, and P3. The maximum Rosie's can sell is 85,000 units of P1, 84,000 units of P2, and 72.000 units of P3. Rosie's has limited production capacity of 69,000 hours, It can produce 12 units of P1, 6 units of P2, and 3 units of P3 per hour. Contribution margin per unit is $5 for the P1, $15 for the P2, and $25 for the P3. What is the most profitable sales mix for Rosie's Company? Multiple Choice 372.000 P1, 84,000 P2, 72,000 P3 64,800 P1, 84,000 P2, 372.000 P3. 372,000 P1, 80,000 P2, 372.0000 P3. 58,800 P1, B0,000 P2, 72.000 P3. 64,800 P1, 85,000 P2, 64,800 P3.arrow_forwardAlpine Luggage has a capacity to produce 430,000 sultcases per year. The company is currently producing and selling 350,000 units per year at a selling price of $400 per case. The cost of producing and selling one case follows: Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs Total costs Selling price per case Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs Net profit (loss) per case The company has received a special order for 40,000 sultcases at a price of $249 per case. It will not have to pay any sales commission on the special order, so the variable selling and administrative costs would be only $52 per sultcase. The special order would have no effect on total fixed costs. The company has rejected the offer based on the following computations: Sales revenue Variable costs Manufacturing Selling and…arrow_forwardYorkville sells a haircutter at $65 and each unit has variable cost of $25. Yorkville's fixed manufacturing costs are $80,000 when produces at its full capacity of 10,000 units and its its fixed cost per unit is $8 per unit. The company has an offer of 2,000 units at $30 each in an international market, which would not affect its current production but would increase the fixed cost by $5,000. How much is the incremental net income if it accepts the special order? Select one: a. $10,000 profit b. $6,000 loss c. $5,000 profit O d. $70,000 lossarrow_forward
- rally synthesis inc. manufactures and sells 100 bottles per day. fixed costs are $22,000 and the variable costs for manufacturing 100 bottles are $30,000. Each bottle is sold for $1,200. how would the daily profit be affected if the daily volume of sales drop by 10%?arrow_forwardApplesoft produces tablets, laptops and televisions. Applesoft typically sells 1,000 tablets a year. The tablet information is as follows: Selling price per unit $60 Direct material cost per unit Direct labor cost per unit Total allocated overhead (1/4 avoidable if eliminate tablets) $80,000 One fourth of the allocated overhead would be avoidable if the tablets were eliminated. How much would Operating Income change by if Applesoft were to eliminate the tablets? Be sure to include "-" in front of your amount if net income will decrease $30 $15arrow_forward
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